well you can do it without networking, but it'd be more trouble than it's worth. you'd have to call at&t and they'd lease you another cable modem, and charge you for a lot of things, and it'd be bad.
whether you choose to network through software or hardware, you want to get a cat-5 cable (and make sure you have ethernet cards). i think you can do it though parallel ports, but imho, the easiet way is this:
get a router with a built in switch (linksys is good)
get a long enough cat-5 cable
make sure you have ethernet cards in both computers
hook them up, and make sure internet exploere does not "automatically detect settings" under lan settings.
and you're set! super easy, not too expensive.
one more thing, if your friend has installed at&t's software, which you don't really need, you'll need to uninstall it because it resets your internet explorer preferences so that it does automatically detect settings. trust me, you're better off without it =)